Sri Lanka Expects Major Debt Restructuring Deals as IMF to Review Bailout

Photo credits: unsplash
Sri Lanka expects to forge major deals in its debt restructuring this month as the International Monetary Fund conducts the first review of its $3 billion loan program.
Legislators this week are likely to pass a bill amending tax laws, clearing a legal hurdle
and allowing a domestic bond swap to be completed by mid-September, central bank Governor Nandalal Weerasinghe said at an investor forum Tuesday.
Meanwhile, officials expect to reach an agreement on how to restructure its foreign debt also this month, he said.
After months of delay, Sri Lanka is stepping up efforts to fast-track its debt restructuring to help secure more funds from the IMF and set its economy back on track after it defaulted in 2022.
Sri Lanka’s dollar bondholders and lenders like China and India are closely watching
the local debt exchange as creditors seek equal treatment.
“A conclusion to the domestic debt restructuring is now likely in the next 10 to 15 days,” said Saurav Anand, South Asia economist at Standard Chartered Plc. “It’s less likely that external negotiations will be completed this month.”
Passing the IMF review, which will be held from September 14 to 27, will pave the way for the disbursement of about $330 million by November.
Sri Lanka’s dollar bonds due 2030 edged up 0.2 cents to 44.7 cents on the dollar on Tuesday, according to indicative pricing compiled by Bloomberg.
The rupee fell 1% to 321 per dollar, the biggest drop in a month.
(Source: Bloomberg)

Latest Headlines in Sri Lanka
- Police team appointed to assist probe on IGP Deshabandu Tennakoon April 29, 2025
- Maithripala pays Rs. 1 Million compensation over Royal Park murder pardon April 29, 2025
- Head-on bus collision in Beliatta injures 30 April 29, 2025
- Transport Minister to expedite delayed overhead bridge project in Colombo April 29, 2025
- Shooting in Panadura: One killed, another injured April 29, 2025